THE LIGHTS OF STRATFORD

Stratford Evening Post, Volume XXVII, Issue 85, 10 August 1915, Page 7

THE LIGHTS OF STRATFORD

t I DISCUSSION AT COUNCIL TABLL I _ ! DLGUiION TO TAKL OVER COMPANY'S UNDERTAKINC '. "That the Electric Light Company be notified that the Council ; is willing, .subject to sanction by j the ratepayers, to take over the I Company's undertaking as a going concern, the plant to be tak- ! en at valuation; the goodwill also j to be taken at valuation, on the basis that all goodwill ends at tho end of the concession; valuation to be arrived at by valuers appointed by either side, and the : employment of an urn pile, if necessary."

1 Cr. Hancock, speaking to his notice of motion as above, at ihejnoeting oi' the Borough Council last night, said that he' had given a good deal of thought to the question of acquiring the Electric Light- Company's underbaking since the conference irith the Company, and he had come to the 'conclusion that there was only one fair way, bath to iiorough and Company, of acquiring the concern, and ithat was that the Council should take over the Company's plant at valuation, by which means they would only have to pay what the plant was actually worth. He considered there would be little or no goodwill at all, especially when they had the assurance of the Company that they wore willing to allow the Council to assess the goodwill at valuation on the basis that all goodwill ends at the end of tho concession. Some Councillons were, he believed, in favor of putting in a new plant and changing, the voltage [from 110 to 220, but that would, in jCr. Hancock's opinion, bo costly to I the ratepayers. At the present timo !he understood there were about GOO 'connections, and taking the average !at live lights in each house (which ! would be on tho low side), it would 'cost about £7<3o to discard tho 100 and 'put in the 220 Then thevo j would be the question of |the% re-wiring of tho houses, [new motors, irons, kettles, etc., which would probably cost an'other £3OOO or £IOOO. Again, thercj jwas the question of erecting the new plant, which would take a year or so jto complete, and that the Council would have to pay interest on the. 'loan during that time, and all the time would be receiving practically no rcjvenue; whereas if they took over tho j Company's plant it would bo earning revenue from the jump. It would cost half as much to ru-wire houses 'and discard old globes, motors, etc., as would buy the Company's plant. Considering all these circumstances, then, he thought the Lorough would ibe acting wisely if they acquired the Company's undertaking as soon as possible. Then they would be able to erect a few arc lights in the streets and make the town look like a town instead of the miserable place it was at present, in conclusion, Cr. Hancock said he had no interest in the Company in any way whatever, and «as simply moving the motion as a Vatepay'cr and as a representative of the ratepayers, as he considered it was to everyone's advantage that they 'should own the light. He iiad much 'pleasure in moving the motion standling in his nanio.

Or. Hunter seconded tJio motion, Stating that lie had as much pleasuro ia doing so us the mover felt in his position. He said he was not going to talk on the subject, us it was threshed out. Some very good points had been brought out by Or. Hancock, especially in the matter of the voltage. His only objection to taking over the plant was on the question of voltage. ' The goodwill was the only point of difference, but as the Company was agreeable to value the plant on the basis that tho goodwill ended with the concession, in his opinion, tho Council should allow them goodwill. Nothing could be done fairer. "Now is the accepted time." Or. Hunter, being subject to interruption by Or. Young, retorted: ".Now, Or. Young, don't interject; I don't want to be overshadowed by your eloquence. s ' (Laughter). Or. Thompson aske# what the- motion meant in referring to the appointment of valuers by "either" side. The Mayor said both sides would appoint valuers.

Cr. Thompson said he thought there should bo separate valuers lor the goodwill as well as the plant.

Cr. Law son supported the motion. Cr. Mills said the time had arrived when the Council should take over the plant. Alter listening to the directors, more especially to Mr I'orritt and Mr JJudgo, ho saw no reason why they should not take it over.. There was no reason to be afraid; it was just a business proposition. Cer-

tuinly there was a goodwill, and the only way to get at it was through expert advice, as this was a point which was disagreed upon at the- conference. Possibly there should be valuers for the goodwill as well as for the plant. If the Council went to the ratepayers unanimous, on the point he did not think there would be any opposition to it. He would like to see unanimity arrived at that night by the Council. • Hie Mayor moved as an amendment, that with a view to taking over the Company's plant, the Council ask the Company to state the price they wanted for the goodwill. He said he was not in favor of taking the plant over by arbitration. In fact, he did not want their plant, Anyone going into machinery wanted to get

the best. The Company only had a short time to go, and he did not think they should be approached in the matter at all. He believed the Council would have to pay a good deal in the matter of new transformers: the trouble was, not with the light at all. The Government said so, and he knew it was the case everywhere. They would have to spend thousands even after they had taken it over. There was the question of arriving at the amount of the goodwill, and the Company would say it should be on. a basis of a yearly profit, of £7OO, and possibly more, reckoned at compound interest. Or. Hunter said the test had nothing to do with the wiring over 125 volts. It was the lixlures, and underwriters would not pass any house lor a minute. '

The Mayor said Mr Cliinie reckoned the cost would be £2OOO more for wiring in the change from 110 to the higher voltage. "You don't know where you are in connection with the whole concern," said the Mayor. "If you go on in this way you will have the paper ilooded with correspondence about the Council. You have ho idea of what you have to tackle. If the goodwill is stated, you know where you are." Cr. Kutherfurd seconded the amendment. He said it was not a question of whether the plant was good, bad, or indifferent. He referred to what ho considered a serious aspect of the affair in the need for greater water power or probably another Deisel engine. After some years the Council would be faced with the necessity of putting in of repairing a new weir and securing new rights, etc. The Company was standing firm because they know the Council would have to construct a plant under difficulties, and they were throwing that up against the Council. There was always the possibility that within four years the Council might go in for gasworks. If the Council did so, and told the Company to lake the plant away, the shares now worth £1 wouldn't realise 10s. lu spite of what the Council thought, they had to consider the ratepayers, who, if they were not satisiied, wouid do what they always did do when it came to a case of voting. Cr. Young opposed the motion. I'liey had their duty to do to the ratepayers. Cr. Lawson: "We #re doing it!" Cr. ioung, proceeding, said it had bceu in the power of the Council for years to take o\ cr the Company's plant, and it was a great risk to put the matter to arbitration. Let the term of the concession run out, he said. Why interfere now ? Cr. Mills :#'l"o make money!" Cr. Young, proceeding, said he could not understand that with a concern that was not paying they should want to take it over before the end of the 'concession, with the risk of paying a goodwill, when in a few years they

could have the same without paying lor gogdwill. Cr. Young complained that he had not received proper notice of the notice of motion. Further, since l the meeting only a fortnight ago, some of the Councillors had turned a complete somersault, and were playing into the hands of the Company .

! (Jr. Hunter, in the course of further remarks, said a valuer must take into consideration the fact that the concession ended in four years, and the plant would then have to be shitted if it was not taken over.

Cr. Thompson opposed the amendment for the reason that it was a, sheer impossibility for the Council to agree that the Company should iix the amount of the goodwill. On the amendment being put the ayes were:—The .Mayor, and Crs. Young and Rutherfurdj Noes.—Crs. Hancock, Davey, Hunter, Lawson, Mills, Thompson and Stanley. Alter. discussion, Cr. Thompson dialled the following to add to Cr. Hancock's motion: ".Each side to appoint their own valuers for separate valuations to be made of the plant and goodwill, plant to be valued by engineers and goodwill by qualified accountants." The discussion wandered somewhat at this stage, and the Mayor called upon Councillors to rise when addressing the chair, to which remark Cr.. Hunter took exception. "It seems that you want to jump on me all the time," he said. "If I am so absolutely odious, I will leave the Council. lam not so anxious to waste my timo here!"

(Jr. Young made some reference to Councillors.' duty, and Cr. Hunter replied warmly: "So am i. trying to do it!"

The question of finance was raised

by the Mayor, and he asked what rate the Council was prepared to pay for the money. There were also other details which might be found awkward for the Council and the ratepayers if they were not embodied in the letter to the Company. In due course all these were talked out, and Cr Huntec being again at normal, stressed the point that the action of the Council was subject to the sanction of the ratepayers. There was no getting away from the fact that the Company were out to sell, 'and the Council out to buy. The jCompany, the Council might be sure. were not going to put anything in the .way. All minor questions could be settled "at the meeting. If not, then the matter would go no further. On the motion of Crs. Lawson and (Mills, it was agreed to embody Cr. Thompson's addition in the resolution, the division list being the same as the previous one. I The following was then "moved by

Cr. Hunter, seconded by Cr. Davey— That subject to the Company's agreement to the resolution, the Council meet the Company on Monday, 20th iust. The Mayor disagreed with the motion, stating that he was compelled by his position to consult the ratepayers before allowing the Council to commit itself to expense in the matter of valuers, etc. This was another fruitful subject for discussion, and an amendment was moved by Cr. Young, seconded by the Mayor that the Council meet the ratepayers before going further with the Company. The amendment was lost. Eventually the motion was put to the meeting and was declared carried on the voices.